On Friday, President Donald Trump stated that the Federal Reserve will reduce interest rates a day after the meeting with the chairman of the central bank, Jerome Powell.
The president stated that the meeting has accepted a positive tone and believes that the Fed is willing to deliver the monetary policy that he has loved for months.
“I think we had a very good meeting about interest rates. And we had a very good meeting. [Powell] To me to me … very strong, the country is doing well, “Trump said to reporters.” I have meant that I think he will start to recommend lower prices. “
Powell and his political decision -makers hesit the lower rates because they were waiting to see the effects of Trump's tariffs on inflation. In fact, an argument that Powell has put forward to cutting has that the economy is strong enough that it can withstand higher installments if the officers observe how the data develops.
Before Trump's comments, the budget director of the White House Russell Vogous maintained the heat of the Fed's renovation project in order to drive the case for a review of the central bank and at the same time urge lower interest rates.
VOUGHT -Arocked Trump's desire for the Fed to relieve monetary policy in order to help the economy and especially the real estate market.
“There are a number of problems in relation to the FED, and we would like to make sure that these questions will be answered over time,” said Vought during the appearance “Squawk Box”. “This is not a pressure campaign for the Fed chairman.”
The tone after the meeting on Thursday was after months – and even years – by Rancor between the White House of Trump and the Powell Fed.
Both sides described the tour as positive, and a Fed official published an explanation on Friday in which the central bank was “honored” to welcome Trump and other Republican officials.
“We are grateful for the president's encouragement to complete this important project,” said the spokesman for the Fed. “We are still obliged to continue to be careful administrators of these resources, as we see the project until completion.”
Pressure to continue
Nevertheless, Voe said that the White House is planning to pursue what the finance minister Scott Besser has checked as “the entire” Federal Reserve.
In addition to the questions of the construction projects and interest rates, the officials also criticized the FED for the operational deficit that is going because the interest rates have kept high. In the past, the FED has transferred what it deserves from her investments in the Ministry of Finance, but in 2024 a defect that was almost 80 billion US dollars in 2024, since the interest that she paid for bank reserves exceeded what she recognizes for investments.
“We will continue to articulate our political concerns about the Fed management management,” said Vought. “You can not only be in the Fed and have no criticism to lead. There is no such thing in the American political system.”
During the meeting on Thursday, Trump also expressed confidence that Powell and his colleagues will see the President's things about prices.
“I think the chairman will do the right thing,” said Trump reporters. “I mean, it may be a little too late, as the expression is, but I think he'll do the right thing.”
Despite the previous rancor, Trump recently used earlier threats to dismiss the Fed chair, and on Thursday he confirmed that he did not see the need for Powell.
Future's markets practically no chance of reducing in installments if the Fed meets next week, the next step will not be viewed until September. Market prices are also faced with the possibility of another cut before the end of the year.
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